Retro: Deciding to Buy or Rent


Should we buy or rent

I’m at a crossroad right now and am trying to decide what the best course of action would be moving forward. I just graduated college last week. I’m about to start my brand new job. The questions now revolve around the housing situation moving into the future. We need a place to live! The top three options include:

  1. rent an apartment
  2. purchase a new home
  3. purchase a duplex

Overall I am intrigued by the duplex option. We would purchase the entire building and live in one side, then rent out the other side. If we go the route of purchasing a home or duplex, we still have the option of renting an apartment temporarily, month-to-month, until the purchase close date. This has been offered to me through my real estate agent.

Our financial situation seems solid. My salary will be $53,000/year and my fiance’s will be $30,000/year. I have worked with a local bank to determine financing options. Going through the entire qualification process resulted in a pre-approval for a purchase up to $240,000 (with 20% down payment) with loan terms of 30-years @ 5.90%.

Here is the rest of our current situation:

  • Minimal student loan debt
  • Small car loan (through family)
  • No credit card debt
  • $40,000 cash sitting in money-market accounts (moved over from mutual funds)
  • Ability to raise additional $10,000 through family gift (really loan, but avoids taxes)

I consider our financial situation to be very fortunate and above average compared to my fellow graduates. We both saved quite…

Continue reading the “Deciding to Buy or Rent” post by clicking here.


Note From Author

The full “Deciding to Buy or Rent” post has been back-dated to 05/19/2005.  But it was originally published to the Financial Independence Champion ( Blog on 05/24/2016.

Why Back-Date Posts?

I mentioned in my first post how this blog will be a little different than any other ones you may follow.  I still plan to talk about personal finance, rental property, travel, and the pursuit of financial independence.  But to give all these topics the right context and the full picture, I need to start at the beginning.  I need to fill in the details of life from 2005 until now.  I want you to see the successes, the struggles, and all the milestones we passed along the way.  Therefore most of the “new” content will be back-dated to their appropriate dates in 2005, 2006, and beyond — until we’re caught up!

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